IMC Trading–styleTraderGraduate TraderQuestion #38
Consider a game where you flip a fair coin: if it lands heads, you win $20, and if it lands tails, you lose $5. Would you like to play this game? In a second game, the payouts are $20 million for heads and lose $5 for tails. Would you prefer the second game? Lastly, if the payouts return to $20 for heads and -$5 for tails, but you can choose to play either once or 100 times, which option do you prefer and why? Please explain your reasoning.
Build Your Approach
State the assumptions, try a simple case, then work toward a general solution. Check the result and explain how it changes if an assumption changes.
Try the free diagnostic with worked solutions →Get Free Interview Prep Resources
More IMC Trading–Style Trader Questions
You have a 100-story building and two balls that break when dropped from too high a floor. What is the minimum number of drops needed on average to determine the highest floor from which a ball can be safely dropped?Given 20 horses and 5 tracks, what is the minimum number of races required to determine the three fastest horses, assuming you can race up to 5 horses at a time and there is no timing, only order of finish in each race?What is the probability of rolling an increasing sequence when you roll a die three times?You have a 4x4 grid and three balls. If you manage to get at least 2 balls in the same row or column, you win. What is the probability of winning?How much would the average global sea level rise if the mass of Mount Everest was submerged into the ocean?
Practice the Reasoning Behind the Answer
Bring your target roles and interview timeline to a free quant consult. Discuss your preparation priorities and how Quant Blueprint’s lessons, practice and mock interviews can help.
Book a Free Quant ConsultYour goals · your preparation · your next steps